Seggerman Pleads Guilty to Conspiracy in Tax Evasion Case

Aug. 28 (Bloomberg) -- Henry Seggerman, accused with other
family members of hiding from federal authorities millions of
dollars in his father’s estate, pleaded guilty in Manhattan
federal court to conspiracy and tax crimes.

The U.S. claimed Seggerman’s father, Harry G.A. Seggerman,
a New York businessman who died in 2001, left a $24 million
estate, more than half of which was held in undeclared Swiss
accounts. Henry Seggerman, 60, is listed on the website of his
father’s hedge fund management firm, International Investment
Advisors LLC, as the chief investment officer.

Henry Seggerman pleaded guilty today to conspiracy and two
counts related to the filing of false tax returns. He faces as
long as 11 years in prison. Three of Seggerman’s siblings,
Suzanne Seggerman, Yvonne Seggerman and Edmund Seggerman have
previously pleaded guilty to conspiracy and tax crimes.

Their father was a pioneer in investing in Asia, according
to a May 2001 story about his death in the New York Times

Henry Seggerman is expected to testify on behalf of the
government in the trial of Michael Little, a lawyer who was one
of the family’s advisers, Assistant U.S. Attorney Stanley Okula
told U.S. Magistrate Judge James C. Francis at the plea hearing.

Making Amends

“I deeply regret my participation in these activities and
intend to make amends for my conduct,” he said at the hearing.

Little, whose trial date hasn’t been set, was charged with
participating in an 11-year conspiracy to defraud the U.S.
Internal Revenue Service using Swiss bank accounts and sham
mortgage transactions. He has pleaded not guilty.

A message left at the Seggerman’s firm wasn’t returned.
Seggerman is free on a $100,000 bond. Under a plea deal, he
agreed to pay a $600,000 in restitution at the time of his
sentencing, which hasn’t been scheduled, according to
prosecutors.

“Henry Seggerman and three of his siblings inherited and
continued a family tax fraud scheme. Now, four members of this
family stand convicted of tax crimes,” Manhattan U.S. Attorney
Preet Bharara said in a statement. “We will continue to
aggressively investigate and prosecute U.S. taxpayers, and those
that assist them, in evading their obligations by hiding money
in secret offshore accounts.”

The case is U.S. v. Seggerman, 13-cr-00174, U.S. District
Court, Southern District of New York (Manhattan).